MNI DATA IMPACT: US March IP Below-Expected -0.1%>

--March Capacity Utilization At 78.8%

--IP Decline Due To Motor Vehicles, Mining Weakness

     WASHINGTON (MNI) - The March industrial production data were weaker 

than expected, below the 0.2% gain expected by both the Bloomberg 

consensus and an MNI survey of analysts. A 2.5% decline in motor 

vehicles was the biggest factor. Capacity utilization fell to 78.8% in 

March. 

     Here are some of the key takeaways from the data released Tuesday:

     - Industrial production decreased by 0.1% in March, due in large 

part to weakness in motor vehicle production and mining, offset by 

gains in petroleum and coal products. 

     - Manufacturing production posted a flat reading in the month on a 

2.5% decline in motor vehicles production, and mixed readings in most 

categories, partially offset by gains in petroleum and coal products, 

and computer and electronic products. Outside of motor vehicles and 

parts, manufacturing production would have been up 0.2%. 

     - Utilities production rose 0.2% following a 3.7% increase in 

February, as temperatures have been returning to normal levels after 

being cooler than usual in February. The March mix showed a 0.5% 

decrease in electricity production and a 3.8% gain in natural gas. 

     - Mining production posted an decrease of 0.8% in March, following 

a flat in February, continuing the string of weak readings since 

January, suggesting some slowdown in growth. 

     - Capacity utilization came in at 78.8%, below the 79.2% expected 

expected by MNI, following a 79.0% reading for February. Manufacturing 

capacity utilization fell to 76.4% from 76.5% in February, showing a 

decline in production capability. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]